Education Trusts: A Unique Way to Plan for Higher Education

Thursday, April 10, 2014

An Education Trust is a trust established for the exclusive purpose of financing the ever increasing costs of higher education.

Education Trusts can be great planning tools for anyone looking to provide funding for the education of loved ones and are typically used by grandparents, parents or others who are looking to assist with these costs.  They are a great way to build a meaningful asset over time using monies which might have gone for far less important gifts for holidays, birthdays and special occasions.

  • Education trusts allow great flexibility in regards to how the trust funds are used.  For example, you can make the trust as restrictive or as broad as you would like.  You can even specify the types of educational institutions that trust funds can be used for.
  • You can name as many or as few beneficiaries in one education trust as you would like.  You can also differentiate between the amounts received by named beneficiaries.
  • Education trusts are a great way to take advantage of $14,000 annual gift tax exclusions.
  • You can contribute a variety of assets to an education trust including, but not limited to, cash, real property, stocks and other investments.
  • You can ensure a legacy for your family by ensuring that the people you love most have the means to pay for a higher education.

For more information on how you and your family can benefit from this approach to education financing, call Michele English at 919-265-0800.